Spunweb Nonwoven IPO: ₹60.98 Crore NSE SME Issue Opens July 14 with Solid Growth Story

Spunweb Nonwoven Limited, a Rajkot-based manufacturer of spunbonded nonwoven fabrics, is launching its ₹60.98 crore NSE SME IPO. The issue, entirely a fresh issue of 63.52 lakh shares, is attracting attention for its robust financial growth, sector demand, and diversified export markets.

IPO Details: Pricing, Dates, and Lot Size

• Issue Type: Bookbuilding (NSE SME)

• IPO Price Band: ₹90–₹96 per share

• Face Value: ₹10 per share

• Total Issue Size: ₹60.98 Crore (63.52 lakh shares)

• Listing: NSE SME Platform

• IPO Opening Date: Monday, 14 July 2025

• Closing Date: Wednesday, 16 July 2025

• Allotment Date: Thursday, 17 July 2025

• Listing Date: Monday, 21 July 2025 (tentative)

Lead Manager: Vivro Financial Services Private Limited
Registrar: MUFG Intime India Private Limited (formerly Link Intime)
Market Maker: Rikhav Securities Limited

Lot Size and Investment Requirements

Investors must apply in minimum lots of 2,400 shares (2 lots):

• Retail Minimum: ₹2,16,000 (2,400 shares)

• HNI Minimum: 3 lots (3,600 shares) = ₹3,45,600

Bidding at cut-off price is not allowed in this IPO for any category.

Reservation Breakdown:

• QIB: ≤50% of net issue

• Retail: ≥35% of offer

• NII: ≥15% of net issue

IPO Timeline (Tentative)

About Spunweb Nonwoven Ltd.

Incorporated in 2015, Spunweb Nonwoven Limited is engaged in manufacturing high-quality spunbond nonwoven fabrics used in:

• Doormats

• Bags

• Carpets

• Tarpaulins

• Hygiene products

• Medical packaging

• Agriculture

• Construction

Key product lines: Hydrophobic Fabric, Hydrophilic Fabric, UV-Treated Fabric.

Competitive Strengths

• Among largest spunbond nonwoven fabric manufacturers in India

• Advanced cleanroom and spunbond technology

• Tailored manufacturing for industry-specific needs

• Strong, long-standing relationships with diverse clients and geographies

• Robust quality control with in-house testing facilities

• Experienced promoters and execution team

Export markets include USA, UAE, Italy, Egypt, Saudi Arabia, Sri Lanka, Nepal, Kenya, Nigeria.

Major clients: RGI Meditech, Millenium Babycares, Sekhani Industries, Myra Hygiene, Poligof Micro Hygiene (India), Salus Products, Kwalitex Healthcare, among others.

Manufacturing Facilities

• State-of-the-art plant in Rajkot, Gujarat

• Facilities for Universal Tensile Testing, Rewet Properties Testing

• As of 31 May 2025: 199 employees

Promoter Background

• Jay Dilipbhai Kagathara

• Kishan Dilipbhai Kagathara

• Pre-issue promoter holding: 88.50%

Financial Performance: Strong Growth

Revenue & Profit Growth (FY24 to FY25):

• Revenue: ₹154.24 Cr → ₹227.14 Cr (47% increase)

• PAT: ₹5.44 Cr → ₹10.79 Cr (98% increase)

Detailed Financials (₹ Cr):

Key Performance Indicators (KPIs)

• ROE: 31.63%

• ROCE: 33.66%

• Debt/Equity: 2.11

• RoNW: 31.63%

• PAT Margin: 4.75%

• EBITDA Margin: 13.75%

• Price-to-Book Value: 3.95

Valuation Metrics

Based on FY25 earnings, the IPO is fully priced, but the sector leadership and growth support valuation.

Objects of the Issue

Spunweb Nonwoven proposes to utilise net proceeds as follows:

Lot Size Table

IPO Allotment: How to Check Status

Allotment is expected on 17 July 2025. Check on MUFG Intime India:

1. Visit IPO Allotment page.

2. Choose Spunweb Nonwoven IPO.

3. Enter Application Number / PAN / DP Client ID.

4. Submit to view allotment.

Expert Review & Recommendation

As per market analysts:

✅ Sector demand is robust, with hygiene, medical, and packaging uses.
✅ Company has strong growth track record, modern facilities.
⚠️ High debt (Debt/Equity ~2.1) needs close watch.
⚠️ Issue appears fully priced on FY25 earnings.

Verdict:
✅ Medium-to-long-term investors may Apply for growth exposure.
⚠️ Short-term listing gains are less certain but first-mover SME listing effect may support demand.

Disclaimer:

This article is intended for informational and educational purposes only and does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions. Investments in securities are subject to market risks. Please read all related documents carefully before applying for the IPO. The data provided is based on publicly available information and may be subject to change.

The Upcoming IPOs in this week and coming weeks are Monika Alcobev, NSDL, Anthem Biosciences, Spunweb Nonwoven.

The Current active IPO are Smartworks Coworking, Asston Pharmaceuticals, CFF Fluid Control, Glen Industries.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.

Disclaimer:

This article is intended for informational and educational purposes only and does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions. Investments in securities are subject to market risks. Please read all related documents carefully before applying for the IPO. The data provided is based on publicly available information and may be subject to change.

The Upcoming IPOs in this week and coming weeks are Monika Alcobev, NSDL, Anthem Biosciences, Spunweb Nonwoven.

The Current active IPO are Smartworks Coworking, Asston Pharmaceuticals, CFF Fluid Control, Glen Industries.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.